Nifty 50 slips below key support of 25,800 on weekly F&O expiry day. Will stock market bounce back from here?

Key Highlights

• Bank Nifty index declined 329.10 points, or 0.56%, to 58,909.45.
• Broader markets also reeled under heavy selling pressure, with the Nifty Smallcap 100 and the Nifty Midcap 100 indices falling 1.5% each.
• On December 9, Tuesday, its weekly derivatives expiry day, the benchmark Nifty 50 slipped below the critical support zone 25,800 level, which has been serving as a key short-term demand base.
• Analysts believe a decisive break-down below 25,800 would weaken the broader upward structure and may accelerate selling pressure, dragging the index toward the 25,500 zone.
• Nifty 50 witnessed profit booking and long unwinding in the past two sessions, while fresh call writing around 25,900 indicates emerging short positioning at higher levels.